On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank launched the InsuResilience Solutions Fund (ISF) to increase the resilience against the impacts of climate change and natural disasters at the micro, meso and macro level. The ISF promotes the development of innovative and sustainable climate risk insurance solutions tailored to meet the needs of households, small and medium-sized enterprises, humanitarian organisations and governments in developing and emerging countries affected by climate change. Thereby, the ISF increases the resilience of poor and vulnerable people to extreme weather events such as floods, wind/storm, excess rain, drought or cold spells. It represents a pivotal delivery channel of the InsuResilience Global Partnership. The Frankfurt School of Finance and Management has been commissioned by KfW to manage and implement the Fund´s activities.
The ISF seeks to increase the resilience and capacity of developing and emerging countries to adapt to climate change by
- supporting comprehensive climate risk analysis as a vital basis for governments, businesses and households to become more proactive risk managers and take informed decisions in defining needs-based climate risk management and adaptation strategies.
- funding studies and providing advice for the development of new concepts for climate risk insurance solutions taking into account the specific needs of the poor and vulnerable population.
- co-funding the development and market introduction of new and supporting the expansion of existing innovative climate risk insurance products.
With these three components, the ISF contributes to the Vision 2025 of the InsuResilience Global Partnership pushing for a substantial scale up in the use of pre-arranged risk finance and insurance mechanisms, embedded in comprehensive disaster risk management, complementing broader resilience and adaptation efforts.
With its unique approach, the programme seeks to systematically leverage the expertise and capital of the insurance sector and actively supports international organisations, governments and the private sector in developing innovative climate risk insurance solutions.
Joined partnerships of different stakeholders from the demand and the supply side, e.g. between (local) public entities (e.g. national or regional government bodies), private companies in the insurance sector and NGOs are invited to apply for ISF co-funding submitting proposals for the development of climate risk insurance in specific Call for Proposals. Since its establishment in 2019, the ISF already launched three Calls for Proposals that generated high interest from both insurance companies and the public sector worldwide. So far, the Fund has received more than 100 applications to support innovative climate risk insurance solutions.
Further information: https://www.insuresilience-solutions-fund.org/en